The Closing Price of a Company's Stock Tomorrow Can Be

question 89

Multiple Choice

The closing price of a company's stock tomorrow can be lower,higher or the same as today's closing price.After evaluating all the information available on the company's fundamentals and the economic environment,an analyst has determined that the probability that tomorrow's closing price will be higher than today's is determined to be 25%.This is an example of using which of the following probability approach?

• A)A priori probability
• B)Empirical probability
• C)Subjective probability
• D)Conditional probability

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Definitions:

IASB's Accounting Standards

The set of principles and guidelines developed by the International Accounting Standards Board that are intended to bring transparency, accountability, and efficiency to international financial markets and reporting.

Mandatory Reporting

The legal requirement for companies and organizations to disclose certain information in their annual reports or other government filings.

Corporate Sustainability

A business approach that creates long-term stakeholder value by implementing strategies that focus on the ethical, social, environmental, cultural, and economic dimensions of doing business.

Potential Interests

Interests or rights that might affect an entity's control or influence over another entity or asset without currently holding a formal interest or stake.